Potential Profit Boost for Retail Giants
The landscape for the largest retail companies may experience a significant uptick in profits due to two key developments. On June 5, Circle Internet Group, a prominent player in the cryptocurrency arena, made headlines with a successful initial public offering (IPO). This company is well-known for creating USD Coin (USDC), the second-most widely used stablecoin, and its shares have surged more than 75% since the IPO, indicating strong investor confidence in this rapidly evolving sector. While stablecoins have been around for several years, they previously faced challenges related to regulatory clarity. However, the situation shifted with the introduction of the GENIUS Act in July, which stands for the Guiding and Establishing National Innovation for US Stablecoin Act. This legislative change has prompted major retailers to prepare for action, with industry leaders such as Walmart and Amazon gearing up to enter the stablecoin market. The question now lies in whether this development will yield positive outcomes or lead to complications.
Why Major Retailers Are Embracing Stablecoins
As reported by The Wall Street Journal, executives at Walmart and Amazon are contemplating the launch of their own stablecoins. These digital currencies maintain a value pegged to stable assets, like the U.S. dollar. For example, one new dollar stablecoin is created for every dollar held in reserve. Currently, retailers handle a vast number of credit card transactions, incurring fees of approximately 3% per transaction charged by companies like Visa and Mastercard. This is a significant cost that retailers, including Walmart, would prefer to recover. By utilizing stablecoins, retailers could circumvent traditional payment systems and potentially save on these fees. Additionally, stablecoin issuers benefit financially from the substantial reserves they maintain. For instance, Circle generated around $1.2 billion in revenue in the first half of 2025 from its USD Coin reserves exceeding $60 billion. This means that both Walmart and Amazon could see considerable savings if their customers use stablecoins instead of credit cards. Moreover, if these companies were to issue their own stablecoins, they could generate significant income from reserve holdings. The recent regulatory clarity provided by the GENIUS Act has catalyzed Walmart and Amazon’s interest in exploring the stablecoin market.
Understanding the Risks of Stablecoin Adoption
Despite the potential advantages, the widespread adoption of stablecoins presents certain risks for consumers. Unlike traditional bank deposits, which are insured, stablecoins do not offer such protections. The scenario where multiple retailers and financial institutions issue their own coins raises concerns about potential mismanagement of reserves, which could result in financial losses for users. In a worst-case scenario where a major stablecoin fails, it could prompt a reevaluation of existing regulations. However, for investors, the prospect of stablecoin adoption appears more promising than perilous. For example, Amazon reported a modest 6% operating profit margin on net sales in North America during the first half of 2025. If the company reduces payment-processing costs, profit margins could improve. Similarly, Walmart’s profit margin stood at just 4% during its fiscal 2025, suggesting it could also benefit from lower transaction fees.
Credit Card Companies Adapt to Changing Landscape
Credit card companies are not standing still amid the rise of stablecoins; they are adapting to the new environment. Visa, Mastercard, and other major players are developing their own stablecoins and providing the necessary infrastructure to support stablecoin transactions for financial institutions. While the future of these companies may seem uncertain with the growing acceptance of stablecoins, they appear ready to adjust their strategies as needed. Furthermore, the transition to a different financial system is unlikely to happen abruptly, allowing Visa and Mastercard shareholders ample time to observe how these changes unfold.
Investment Opportunities in the Stablecoin Market
For investors, the advancements in the stablecoin sector could present lucrative opportunities. As stablecoin adoption increases, particularly among retailers, there is potential for improved profitability through reduced payment-processing fees. Although it is uncertain whether Walmart and Amazon’s stablecoins will gain widespread use, the potential benefits for these companies are noteworthy. Consumers who opt for stablecoins should be aware of the inherent risks that do not accompany traditional bank deposits. However, from a broader perspective, there are promising investment prospects in the evolving stablecoin landscape.
